|
Posted: 22 Dec 2009 08:12 AM PST
It is still a buyer's market for awhile...
About 40% of our buyers come from outside the area. In other markets, the real estate market has come back already. What that means for Coos Bay is that they are able to sell their homes and purchase here.
In Coos County the market is shifting. Prices in 100-175,000 range went down 12% in price from October to November because of foreclosures coming on the market and selling fast. At the same time, the inventory of homes for sale was 10 months in October compared with 24 months just last May.
Following is more news to support that other parts of the country are recovering in the real estate market. Coos Bay is still behind.
National Mortgage News
December 23, 2009
National Mortgage News subscribers: get your full-text news at http://www.nationalmortgagenews.com/premium.
- Home Prices Rise, According to FHFA Index
Home prices rose 0.6% in October and rebounded from a 0.4% decline in September, according to a house price index compiled by the Federal Housing Finance Agency.
- California's Inventory Drops to 4.5 Months
The inventory of unsold existing single-family houses in California is now down to a manageable 4.5 months, according to the monthly roundup of sales activity by the state's Realtor association.
---------------------------------------------------------------------------
When it comes to real estate the general sentiment appears to be that of putting 2009 in the past and looking forward to a brighter 2010. Looking at where we are and where we are headed as far as real estate goes will take us from the present into the future. Currently home values are affordable, because prices are low and interest rates are low. Both of these low levels add up to the fact that it is a great time to be a buyer when it comes to real estate.
Interest rates have been hovering at 5% or lower for the better part of the past year, a trend that cannot be expected to continue. As the market stabilizes more and the economy gets better, interest rates will rise. While home prices still may drop in many areas of the country, they will not drop much more.
Areas that are less affected by foreclosures, short sales and REO properties are likely to level out faster than other areas due to the lack of distressed sales in their inventories. A rise in interest rates may bring real estate prices down to sell but the days of 20% and 30% decreases appear to be unlikely.
In a nutshell now is a great time to buy if you have been waiting for the right time to plunge into the market. Take advantage of low interest rates while they are here. It is a buyer’s market now, it won’t be forever.
For an interesting analysis of the real estate conditions and a forecast of 2010, by CNN Money, click here.
|